After Vodafone Idea shocker, Bharti Airtel reports a steady performance

Bharti Airtel Ltd’s June quarter results will bring relief to investors, especially after the shocking results of Vodafone Idea Ltd. Revenue at Airtel’s mainstay India wireless business grew for the second consecutive quarter. They are up 2.2% from March quarter, on the back of a 4.3% sequential expansion in the March quarter.

In comparison, revenues at Vodafone Idea had fallen 4.3%, and resulted in a 22% drop in operating profit on a like-to-like basis. In Airtel’s case, operating profit or Ebitda dropped only by 1.8%. Ebitda stands for earnings before interest, tax, depreciation and amortization.

Drill down further and it becomes clear why Airtel has handled the onslaught of Reliance Jio Infocomm Ltd much better. To start with, the fall in its subscriber base is far lower than Vodafone Idea’s.